Ted and Tiffany are meeting Mitch and Amber at the Green Turtle Club later in the evening. Wanting to set some limits on what could be an
expensive evening, Ted stops at the ATM and uses his credit card to get
a cash advance. When the two couples meet for dinner, Tiffany tells
Amber that she is going to splurge and get lobster because Ted is rolling
in cash. Mitch overhears this and begins to laugh at Ted for making such
a financial blunder. Ted argues that Mitch is blind to the convenience
and control offered by cash advances, as research shows that people tend
to spend more when using credit cards. Tiffany and Amber ask you to
determine who is right, but you must thoroughly defend your answer to
settle the argument.

1. which one of the following would be an example of a supply-side market failure? a. a gas station is slowly leaking diesel fuel from its underground tanks, and after the leak is discovered, the business immediately cleans up the pollution at its own expense. b. a gas station is slowly leaking diesel fuel from its underground tanks, but the state uses taxpayer money to clean up the pollution rather than requiring the business to pay. c. your business wants to attract repeat customers by putting on a customer-appreciation picnic at a public park, but you decide not to because you couldn't prevent noncustomers from consuming the food and entertainment you provided. d. everyone rushes to the local retail outlet at midnight on the day of the release of a new video game console, and the store runs out before everyone is able to buy one.